Prime Minister to do battle for fighter jet contract

PRIME Minister David Cameron will go gunning for a lucrative Indian order for the Eurofighter Typhoon this week as the City looks for an update from BAE Systems on a multi-billion Saudi Arabian contract for the jet

This week Cameron is leading a business delegation to Mumbai and Delhi. He is expected to launch an eleventh-hour attempt to snatch a £10 billion-plus fighter jet deal from under the nose of the French.

To the shock of the pan-European consortium behind the Eurofighter, France's Rafale jet was named preferred bidder for the 126 aircraft order last year.

Senior sources in the defence industry believe that Cameron has only an outside chance of reversing the decision. But hopes have risen because talks between the French and the Indians are ongoing.

Cameron's negotiations could be complicated as the Anglo-Italian firm behind AgustaWestland has become embroiled in bribery allegations which threaten a big Indian contract for its facility in Yeovil. On Friday, the chief executive of Finmeccanica, the owner of AgustaWestland, resigned in the face of the allegations.

Also this week, British defence giant BAE Systems reports its full-year results. Investors will be looking for signs of progress on £4.5 billion worth of Typhoon contracts for Saudi Arabia. Last December, BAE sold Eurofighters to Oman.